The special police force that arrived from Thalassery took help of the Payyanur police and raided the house of Babu who stays near Kandamkali School Railway Station Road Junction on Saturday and seized documents, valuables and computer from his house.
The scam is similar to Thiruvananthapuram’s ‘Total for You’ scam. Deposits of Rs one lakh to Rs 2.5 crore have been collected from the rich promising the depositors an annual rate of interest of 10 per cent.
Sources informed that majority of retired government employees had deposited their savings in the scheme.
The suspects were operatingtheir business in Thalassery and Payyanur and did not even display a nameboard outside their office.
Police say they were using the name of a Union minister and a Youth Congress leader. Investigation is on.
Published 08 May 2011, 18:52 IST